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15 

REPORT    BY    THE  ^s^ 

BUREAU  OF  FRANCHISES     '"' 

Upon  the  application -ef-tks  / 

DEGNON    TERMINAL    RAILROAD 
CORPORATION 

For  the  right  to  construct,  maintain  and  operate  railroad  tracks  across 

various    streets    in    the    district    bounded    by  Thomson    Avenue, 

Van  Dam  Street,  Hunters  Point  Avenue,  Hayward  Street 

and   Meadow  Street  in  the  Dutch  Kills  section  of  the 

First  Ward,  Borough  of  Queens,  for  the  purpose 

of  conveying  goods,  wares   and 

merchandise  only. 

ACCOMPANIED   BY   PROPOSED   FORM   OF   CONTRACT. 


STp 


MARCH    16,    1914 


M.  B.  BROWN  PRINTING  &  BINDING  CO. 
49-57  Park  Place.  New  York. 


412-14r-150 


The  City  of  New  York,  1 

Board  of  Estimate  and  Apportionment,  I 

Bureau  of  Franchises,  Room  801,  277  Broadway.  ( 

March  16,  1914.  J 

Hon.  John  Purroy  Mitchel,  Mayor,  Chairman  of  Board  of  Estimate  and  Appor- 
tionment: 

Sir — The  Degnon  Terminal  Railroad  Corporation,  under  date  of  December  10, 
1913,  petitioned  the  Board  for  the  right  to  construct,  maintain  and  operate  a  freight 
terminal  railroad  across  several  streets  at  twenty-three  different  points  in  the  First 
Ward,  Borough  of  Queens.  The  petition  was  presented  to  the  Board  on  December 
11,  1913,  and  referred  to  the  Bureau  of  Franchises. 

On  January  9,  1914,  the  Board  adopted  a  resolution  fixing  February  6,  1914,  as 
the  date  for  the  preliminary  public  hearing.  At  the  hearing  no  one  appeared  in 
opposition  and  only  the  attorneys  for  the  company  appeared  in  favor  of  the  granting 
of  the  franchise. 

This  company  was  formed  by  the  Degnon  Realty  and  Terminal  Improvement 
Company,  which  owns  practically  the  entire  area  bounded  by  Meadow  street,  Thomson 
avenue,  School  street,  Hunters  Point  avenue  and  Hayward  street,  Long  Island  City, 
which  area  includes  the  northern  terminal  of  Dutch  Kills  Canal;  the  canal  running 
into  the  property  near  the  middle  of  the  southern  boundary  and  extending  to  a  point 
near  Nott  avenue.  This  property  comprises  about  seventy  acres,  including  street 
and  canal  area.  The  area  of  the  streets  and  of  the  canal  is  equal  to  about  eighteen 
acres;  leaving  more  than  fifty  acres  of  property  to  be  developed  for  terminal  purposes. 
The  property  was  purchased  by  the  Degnon  Realty  and  Terminal  Improvement  Com- 
pany several  years  ago,  at  which  time  neither  Dutch  Kills  Canal  nor  the  streets  con- 
tained therein  were  improved,  the  property  consisting  largely  of  salt  marsh.  Since 
purchasing  the  property  the  Improvement  Company  has  constructed  a  bulkhead  along 
the  canal  and  around  the  terminal  thereof  and  to  a  large  extent  filled  in  the  streets 
sufficient  to  bring  them  to  near  established  grades.  The  property  was  so  reclaimed 
by  using  materials  excavated  from  the  "Sunnyside  Yard"  of  the  Pennsylvania,  New 
York  and  Long  Island  Railroad  Company  and  materials  obtained  from  other  excava- 
tion work  in  the  vicinity. 

The  Borough  President  of  Queens  has  advised  me  that  all  the  streets  in  the 
district  in  which  it  is  proposed  to  construct  the  tracks  have  been  legally  opened, 
originaly  by  certain  street  opening  proceedings,  confirmed  on  or  about  Decetnber  9, 
1881,  and  later  by  deeds  of  cession  made  under  an  agreement  between  the  City  and 
Michael  J.  Degnon  and  others,  approved  by  the  Board  of  Estimate  and  Apportionment 
November  4,  1910,  a  copy  of  which  agreement,  as  executed,  appearing  in  the  minutes 
of  January  12,  1911,  at  page  149,  and  subsequent  deeds  of  cession  from  the  Degnon 
Realty  and  Terminal  Improvement  Company  in  1911.  These  deeds  of  cession  were 
made  necessary  on  account  of  a  change  in  the  street  system  since  the  original  acquisi- 
tion of  the  streets  in  1881,  by  a  change  in  the  layout  of  this  district,  which  change  was 
approved  by  the  Board  on  April  19,  1907  (Minutes,  page  1275). 

The  purpose  of  the  Improvement  Company  is  to  develop  the  area  on  lines  not 
unlike  those  of  the  Bush  Terminal  Company  in  South  Brooklyn  for  manufacturing, 
storing  and  shipping  merchandise,  either  by  the  sale  of  such  property  for  the  erec- 
tion thereon  of  buildings  to  be  devoted  to  manufacturing  or  storage  purposes  or 
by  the  erection  of  such  buildings  for  a  similar  purpose  by  capital  supplied  by  the 
Improvement  Company  itself.  One  of  the  necessary  features  to  such  development 
is  a  quick  and  economical  means  of  handling  the  freight  which  such  a  development 
would  stimulate.  This  freight  may  consist  of  raw  material  brought  to  the  manu- 
facturing plants  or  the  finished  goods  manufactured  or  stored  in  the  area.  There 
has  already  been  constructed  one  building  facing  on  Thomson  Avenue  between 
Queens  Place  and  Orton  Street,  which  covers  an  area  about  200  feet  wide  and  400 
feet  in  length  which  is  to  be  devoted  to  the  manufacture  of  biscuit  by  the  Loose- 
Wiles  Company.  It  is  estimated  that  this  building  alone  will  require  facilities  for 
handling  about  400  tons  of  freight  a  day,  including  both  raw  material  and  finished 
product.     It  is  with  a  view  of  providing  an  economic  method  of  handling  the  antici- 


pated  increased  volume  of  freight  which  will  appear  as  the  development  goes  on 
that  the  Company  laid  out  a  system  of  track  through  the  whole  area  and  asks  for  a 
franchise  therefor. 

The  railroad  proposed  is  so  laid  out  that  tracks  running  longitudinally  through 
the  center  of  each  block  may  be  connected  with  the  docks  on  the  Dutch  Kills  Canal 
terminal  within  the  property,  thus  affording  a  means  of  either  shipping  by  water  or 
of  transferring  loaded  cars  from  rail  to  floats  and  thence  to  the  various  tide  water 
terminals  of  the  trunk  railroads  in  the  Borough  of  Manhattan  or  on  the  New  Jersey 
shore.  It  is  proposed  to  cross  eight  different  streets  by  twenty-three  tracks.  Ten 
such  crossings  are  on  Nott  Avenue,  four  on  Anable  Avenue,  four  on  Creek  Street 
and  five  on  other  streets.  The  railroad  also  connects  with  the  tracks  of  the  Long 
Island  Railroad  which  in  turn  connect  with  the  tracks  in  Sunnyside  Yard.  This 
would  afford  a  means  of  direct  shipment  over  the  Long  Island  Railroad  system  as 
well  as  the  New  York,  New  Haven  and  Hartford  Railroad  and  Pennsylvania  Rail- 
road systems  by  the  connection  between  the  Long  Island  Railroad  and  the  New  York 
Connecting  Railroad,  which  latter   railroad   is  now   being  constructed. 

It  was  at  first  believed  by  the  Company  that  authority  for  the  construction  of  the 
tracks  proposed  could  best  be  obtained  through  the  application  of  Chapters  776  and 
778  of  the  Laws  of  1911.  which  acts  provided  for  the  improvement  of  water  front 
facilities  of  the  City  of  New  York  in  relation  to  the  receipt,  delivery  and  shipment 
of  freight,  and  amends  the  Transportation  Corporations  Law  by  providing  for  the 
incorporation  of   freight  terminal  companies. 

Plans  showing  the  layout  of  the  tracks,  both  on  the  private  property  of  the  Im- 
provement Company  and  on  streets  within  the  district  were  submitted  to  the  Dock 
Department.  The  Commissioner  of  Docks  subsequently  forwarded  these  plans  to 
the  Board  of  Estimate  and  Apportionment,  which  on  April  3,  1913,  certified  the 
same  pursuant  to  the  provisions  of  the  laws  above  named.  (Public  Improvement 
Minutes,  page  2686.)  Later  conferences  were  held  by  the  various  representatives  of 
the  City  and  the  Company,  at  which  it  developed  that  there  was  considerable  doubt 
as  to  the  application  of  Chapters  776  and  778  of  the  Laws  of  1911,  to  a  terminal 
railroad  to  be  built  upon  private  property.  There  having  been  up  to  that  time  no  sim- 
ilar application  made,  it  was  considered  that  the  granting  of  a  franchise  for  terminal 
facilities  pursuant  to  those  laws  might  meet  with  considerable  delays  even  if  such 
a  proceeding  could  be  legally  consummated  thereunder.  In  consequence,  the 
Company  decided  that  a  franchise  granted  under  the  provisions  of  the  Railroad 
Law  and  the  Charter  would  be  adequate  for  all  purposes  and  as  a  result  the  appli- 
cant, the  Degnon  Terminal  Railroad  Corporation,  was  incorporated.  The  certificate 
of  incorporation  was  filed  in  the  office  of  the  Secretary  of  State  pursuant  to  the  Rail- 
road Law  on  November  24,  1913.  By  it  the  Company  is  incorporated  for  the  terra 
of  nine  hundred  and  ninety-nine  years  for  the  purpose  of  building,  maintaining  and 
operating  a  standard  gauge  railroad  to  be  operated  by  locomotive,  steam  power, 
electricity  or  other  suitable  motive  power  for  the  transportation  of  freight  and  other 
commodities,  but  not  for  the  transportation  of  passengers.  The  length  of  the  railroad 
is  to  be  between  one-half  mile  and  a  mile,  exclusive  of  switches  and  sidings,  and 
the  capital  stock  is  to  be  $250,000. 

Under  date  of  December  31,  1913,  the  Company  made  application  to  the  Public 
Service  Commission  for  a  certificate  of  public  convenience  and  a  necessity,  pursuant 
to  Section  9  of  the  Railroad  Law.  Hearings  were  subsequently  held  upon  this  peti- 
tion by  the  Public  Service  Commission,  and  as  the  result  of  the  investigation,  the 
certificate  was  granted  by  the  Commission  on  January  27,  1914. 

Although  this  is  the  first  application  for  a  franchise  for  the  right  to  maintain  a 
freight  terminal  railroad  in  public  streets  which  has  been  made  to  the  Board  since 
the  taking  effect  of  the  terminal  acts  hereinbefore  referred  to,  it  is  by  no  means  the 
first  time  the  Board  has  been  asked  to  grant  such  a  right.  Four  such  authorizations 
have  been  made  by  the  Board  during  the  past  five  years.  The  first  one  was  to  the 
East  River  Terminal  Railroad,  which  obtained  in  1909  rights  to  cross  Kent  and 
Wythe  Avenues  in  the  Williamsburg  district  of  the  Borough  of  Brooklyn,  to  extend 
the  terminal  area  and  facilities  of  the  Brooklyn  and  Eastern  District  Terminal  Com- 
pany. Subsequently,  during  the  same  year,  this  Company  obtained  additional  rights 
in  order  to  legalize  the  existence  of  tracks  which  had  been  in  use  for  some  time. 

The  Jav  Street  Connecting  Railroad  in  1911  was  granted  a  franchise  to  cross 
John,  Jay,  Pearl  and  Plymouth  Streets  for  the  purpose  of  extending  tracks  maintained 
by  the  Jay  Street  Terminal  Company  into  buildings  used  for  manufacturing  and  stor- 
age purposes,  situated  on  property  back  from  the  water  front. 

The  New  York  Dock  Railway  obtained  a  franchise  in  1912  to  legalize  the  exist- 
ence of  tracks  across   several   streets  which  had  been  maintained   for  a  number  of 


years  as  a  part  of  the  railroad  of  the  New  York  Dock  Company  along  the  water 
front  in  the  Borough  of  Brooklyn,  extending  from  Fulton  Street  southerly  to  the 
Atlantic  Basin. 

Besides  these  grants,  the  Bush  Terminal  Railroad  Company  obtained  from  the 
Board  of  Aldermen  in  1905  a  franchise  to  operate  along  the  water  front  in  South 
Brooklyn.  By  this  railroad,  the  Bush  Terminal  Company  moves  all  its  freight  be- 
tween its  warehouses  and  docks. 

All  the  grants,  above  referred  to.  are  for  purposes  similar  in  almost  all  respects 
to  that  desired  by  the  applicant,  and  the  form  of  those  franchises  may  be  also  used 
in  this  case. 

It  may  be  that  the  plans  which  have  been  certified  and  adopted  for  a  terminal  rail- 
road covering  this  property,  pursuant  to  terminal  acts  hereinbefore  referred  to,  may 
have  some  effect  upon  the  granting  of  the  franchise  now  proposed  though  I  believe 
it  is  generally  conceded  by  those  who  are  familiar  with  the  terminal  acts  tliat  this  is 
not  the  case.  The  reasons  for  the  existence  of  these  plans,  however,  have  now  ceased 
and  I  am  informed  the  Chief  Engineer  will  recommend  that  the  Board  may  properly 
rescind  the  action  formerly  taken.  This  should  be  done  prior  to  or  coincident  with 
the  final  adoption  of  the  proposed  franchise,  in  order  that  there  may  be  no  question 
as  to  the  effect  of  the  existence  of  such  plans  upon  the  granting  of  the  franchise  pro- 
posed. 

Conditions  for  the  Contract. 

A  form  of  contract  has  been  drafted  for  the  proposed  franchise,  and  there  follows 
a  discussion  of  some  of  the  conditions  contained  therein. 

Crossing  at  grade  and  subsequent  elimination  of  grade  crossing.  The  Company 
plans  to  cross  the  streets  at  the  grade  thereof,  at  all  the  points  where  such  crossing's 
are  proposed.  Section  89  of  the  Railroad  Law  provides  that  all  steam  surface  rail- 
roads hereafter  built, 

"except  additional  switches  and  sidings,  must  be  constructed  so  as  to  avoid  all 

public  crossings  at  grade  whenever  practicable  so  to  do." 
— The  same  section  requires  the  Public  Service  Commission  to  determine  whether  such 
crossing  shall  be  under  or  over  the  grade  of  the  street,  except  where  the  Commission 
shall  determine  that  such  method  of  crossing  is  impracticable.  It  is  evident,  therefore, 
that  in  any  event,  whether  the  City  should  attempt  to  fix  the  grade  of  the  railway  or 
not,  a  proceeding  before  the  Public  Service  Commission  is  necessary,  in  order  to 
legalize  the  grades  established.  The  grant,  as  proposed  in  the  contract  herewith,  per- 
mits the  Company  to  construct,  maintain  and  operate  the  railroad  tracks  either  at  the 
same  grade  of  the  surface  of  the  streets,  above  or  below  the  grade  thereof,  as  shall 
be  determined  by  the  Public  Service  Commission.  This  is  exactly  the  same  form  of 
grant  heretofore  made  by  the  Board,  hereinabove  referred  to;  the  Public  Service  Com. 
mission  fixing  the  grade  subsequent  to  the  granting  of  the  franchise  by  the  Board. 

The  contract,  while  it  is  based  primarily  upon  the  assumption  that  tracks  will  be 
permitted  to  be  operated  on  the  surface,  yet  it  will  apply  also  to  a  railroad  constructed 
either  above  or  below  the  surface  of  the  street.  It  has  been  somewhat  questionable  to  my 
mind  whether  it  is  more  to  the  advantage  of  the  Company  to  construct  these  tracks 
oti  the  surface  or  on  an  elevated  structure  above  street  grade.  Connection  is  to  be  made 
with  the  Long  Island  Railroad  near  a  point  where  the  tracks  of  that  railroad  intersect 
Hunters  Point  avenue  by  an  overhead  crossing.  In  consequence,  the  grade  of  the 
applicant's  railroad  must  be  raised  at  that  point  to  make  the  connection.  I  am  informed 
that  the  operation  of  the  railroad  into  the  buildings  proposed  to  be  constructed  can 
take  place  as  well  from  an  elevated  structure  as  from  the  surface  of  the  street.  There- 
fore, the  only  apparent  difficulty  in  operatin,?  all  the  tracks  upon  an  elevated  structure 
seems  to  be  the  initial  expense  and  perhaps  the  excessive  grade  to  reach  the  bulkhead 
on  the  canal  basin.  This  latter  difficulty,  however,  is  one  which  is  also  largely  a 
question  of  expense,  since  there  is  sufficient  space  within  which  to  build  an  incline 
track  having  a  grade  which  will  not  be  excessive. 

The  construction  of  a  large  number  of  factories  or  warehouses  upon  this  property 
will,  of  course,  tend  to  add  greatly  to  the  street  traffic,  and  might  make  it  desirable, 
if  not  absolutely  necessary,  for  the  removal  of  the  tracks  from  the  surface  to  such 
elevated  structure  within  a  few  years  after  the  development  of  the  property  begins. 
In  that  case,  the  Company  would  be  put  to  considerable  expense  of  elevating  its 
tracks,  and  at  least  some  of  the  expenditures  which  would  be  avoided  by  the 
construction  of  the  tracks  upon  the  surface  at  the  initial  installation  would  be 
required  at  some  subsequent  date.  If  the  change  of  grade  were  later  made,  under 
the  provisions  of  the  Railroad  Law.  the  City  would  be  required  to  contribute  toward 
the  cost  of  such  improvement.  However,  a  provision  has  been  inserted  in  the  contract 
which  will   free  the  City   from   any  expenditure   for   the   elimination  of   such  grade 


crossings,  and  will  require  the  Company  to  pay  any  sum  which  the  City  might  be 
required  to  pay  on  account  of  such  improvement. 

Connections  ziilh  and  service  to  other  railroads;  provisions  for  extension.  The 
property  owned  by  the  Degnon  Realty  and  Terminal  Improvement  Company  is  not 
the  only  property  in  the  district  which  seems  capable  of  improving  for  terminal 
purposes  along  the  lines  proposed  by  that  Company.  The  property  lying  south  of 
Hunters  Point  Avenue  as  far  as  Borden  Avenue  between  Hayward  Avenue  and  Van 
Dam  Street  seems  also  capable  of  such  improvement ;  the  property  being  low,  unfit  for 
residential  purposes,  and  also  fronts  on  the  Dutch  Kills  Canal.  The  portion  lying 
west  of  the  Dutch  Kills  Canal  is  adjacent  to  the  track  of  the  Long  Island  Railroad, 
with  which  the  applicant  proposes  to  make  its  connection.  Therefore  that  property 
might  in  itself  be  developed  with  both  a  water-front  and  rail  connection.  The  rail 
connection  with  property  east  of  the  Dutch  Kills  Canal,  however,  necessitates  oper- 
ating a  railroad  in  one  of  three  ways,  each  of  which  might  present  considerable  dif- 
ficulty ;  that  is :  first,  crossing  Borden  Avenue  and  private  property  and  perhaps  other 
streets  to  make  connections  \vith  the  Grecnpoint  .\venue  yard  of  the  Long  Island 
Railroad  Company,  which  might  be  difficult  because  of  the  necessity  of  condemning 
land  already  developed  to  some  extent  for  manufacturing  purposes;  second,  crossing 
Dutch  Kills  Canal  and  thence  by  private  property  to  make  connection  with  the 
Long  Island  Railroad,  involving  large  expense  to  construct  and  maintain  a  bridge  across 
the  Canal,  or,  third,  crossing  Hunters  Point  Avenue  and  connecting  with  the  tracks 
proposed  by  the  applicant  and  thence  by  that  railroad  to  the  connection  with  the 
Long  Island  Railroad.  If,  therefore,  the  property  on  the  easterly  side  of  the  Canal 
is  to  be  developed  with  all  the  railroad  facilities  which  the  other  property  in  the 
vicinity  would  have  upon  the  granting  of  franchises  therefor,  it  would  seem  that  some 
provision  should  be  made  in  the  grant  for  any  railroad  in  the  vicinity  for  its  use 
in  the  development  of  other  property  or  its  extension  into  other  development  area. 

With  this  in  mind  two  provisions  have  been  inserted  in  the  contract  which  it  is 
believed  will  afford  facilities  for  the  property  in  the  vicinity,  should  the  need  arise, 
which  are:  first,  requiring  the  Company  to  apply  for  and  accept  a  franchise  upon 
terms  and  conditions  similar  to  those  contained  in  the  present  proposed  grant  and  upon 
receiving  such  franchise  to  so  extend  its  tracks  into  other  property  beyond  the  layout 
of  track  as  shown  upon  the  map  accompanying  the  petition,  whether  the  extension 
take  place  from  a  point  on  private  property  or  from  a  point  on  a  public  street; 
such  franchise  to  be  applied  for  and  accepted  upon  the  direction  of  the  Board,  and 
after  reaching  an  agreement  with  the  applicant  for  such  extension  as  to  the  terms  upon 
which  such  extension  shall  be  made  or  upon  the  determination  of  arbitrators  in  lieu 
of  such  agreement;  and  second,  if  the  right  of  way  of  another  railroad  corporation 
crosses,  intersects  or  joins  the  right  of  way  of  this  Company,  as  shown  upon  the  map, 
then  this  Company  shall  join  with  such  railroad  corporation  in  forming  a  con- 
nection between  the  tracks  of  the  two  companies,  and  shall  grant  facilities  therefor. 
When  such  railroads  are  so  connected,  it  shall  receive  freight  from  and  forward 
freight  to  such  other  corporation  with  the  same  dispatch  and  at  a  rate  not  exceeding 
that  charged  for  similar  service.  If  the  two  companies  cannot  agree  upon  the  terms 
upon  which  such  connection  of  track  shall  be  made,  then  it  shall  be  submitted  to 
arbitrators,  as  required  by  the  Railroad  Law. 

The  first  of  these  provisions  would  afford  facilities  to  property  other  than  that 
now  being  developed  by  the  Degnon  Realty  and  Terminal  Improvement  Company 
without  the  construction  and  operation  of  a  railroad  by  another  railroad  corporation. 
There  are,  however,  limitations  to  this  provision  which  might  prevent  the  construction 
of  the  extension,  even  though  the  Company  endeavored  in  good  faith  to  fulfill  the 
conditions.  I  refer  to  the  difficulties  which  might  arise  to  the  crossing  of  private 
property  to  reach  the  desired  point  and  to  the  possible  difficulty  of  obtaining  property 
owners'  consents  should  they  be  required.  Of  course,  private  property  probably  could 
be  condemned  and  likewise  an  order  might  be  obtained  from  the  Appellate  Division 
in  lieu  of  such  consents,  under  the  provisions  of  the  Railroad  Law.  Nevertheless,  the 
uncertainty  as  to  the  outcome  of  these  proceedings  is  such  that  the  City  would  hardly 
be  justified  in  depending  upon  this  method  alone  in  providing  terminal  railroad  facilities 
in  a  district  which  is  so  evidently  intended  for  terminal  development. 

The  second  provision,  above  referred  to,  would  permit  the  construction  and 
operation  of  a  terminal  railroad  by  another  railroad  corporation,  and  obtaining  a 
water-front  or  rail  connection  by  means  of  the  railroad  for  which  a  franchise  is 
proposed  to  this  Company. 

It  is  believed  that  these  provisions  will  afford  a  means  of  water-front  or  rail 
connection  for  any  property  which  is  capable  of  development  for  terminal  purposes 
in  the  vicinity  of  the  property  owned  by  the  Degnon  Realty  and  Terminal  Company. 


While  it  is  advisable  to  provide  for  extensions  to  the  railroad  now  proposed,  it 
certainly  would  be  a  mistake  to  extend  the  tracks  across  Hunters  Point  Avenue  or 
Borden  Avenue  at  grade.  Those  thoroughfares  in  all  probability  will  be  subjected 
to  very  heavy  traffic  in  the  future,  being  continuous  from  the  water  front  section  of 
Long  island  City  to  points  east  of  Dutch  Kills.  The  clauses  providing  for  extensions 
and  for  connections  with  other  railroads  are  silent  as  to  the  grade  upon  which  such 
extension  or  connections  shall  be  made,  it  being  a  function  of  the  Public  Service  Com- 
mission to  determine  what  the  grade  will  be  after  the  right  has  been  granted,  but  such 
clauses  are  sufficiently  broad  to  permit  of  their  application  whether  the  crossings  shall 
be  at  the  grade  or  over  or  under  the  grade  of  such  streets. 

Motile  Power.  The  Company  is  required  to  operate  its  railroad  by  electric  power 
or  any  other  motive  power  which  may  be  approved  by  the  Board  and  consented  to  by 
property  owners  and  the  proper  officials,  as  required  by  law,  but  no  overhead  wires, 
except  trolley  wires  are  permitted.  The  Company  states  that  during  the  installation 
of  its  electrical  equipment  it  may  be  necessary  to  operate  by  steam  locomotives;  there- 
fore the  contract  provides  that  the  Company  may  have  the  option  of  using 
steam  prior  to  January  1,  1916,  after  which  time  electric  power  must  be  employed. 

Term  of  Grant.  The  original  term  is  fixed  so  that  it  will  expire  on  January  1, 
1929,  with  the  privilege  of  renewal  for  a  term  of  ten  years,  making  a  total  of  prac- 
tically twenty-five  years.  This  is  the  term  which  has  been  fixed  for  the  four  pre- 
vious railroad  terminal  grants  made  by  the  Board  of  Estimate  and  Apportionment, 
with  the  exception  of  the  one  to  the  Jay  Street  Connecting  Railroad,  which  was 
for  a  term  of  fifteen  years  with  no  renewal.  The  reason  that  no  privilege  of  renewal 
was  granted  to  that  Company  was  that  at  the  time  the  application  was  pending,  the 
terminal  acts,  hereinbefore  referred  to,  were  being  drafted  or  pending  in  the  Legis- 
lature, and  the  Commissioner  of  Docks  and  the  Board  of  Estimate  and  Apportionment 
were  considering  the  operation  of  a  City  terminal  railroad  to  be  operated  along  the 
Brooklyn  water  front.  It  was  thought  that  if  such  a  City  terminal  railroad  were 
operated  the  Jay  Street  Connecting  Railroad  might  be  subsequently  used  as  a  part 
thereof,  and  for  that  reason  a  short  term  grant  was  made  to  permit  the  merging  of 
that  railroad  with  the  City's  railroad  at  the  termination  of  the  grant  without  waiting 
for  such  action  longer  than  necessary  in  fairness  to  the  Company. 

The  franchise  to  the  New  York  Dock  Railway  Company,  which  was  subsequently 
granted,  provided  for  the  renewal  term  but  contained  provisions  whereby  the  New 
York  Dock  Company  and  the  Railway  Company  joined  in  permitting  the  City  to 
condemn  tlie  property  of  those  Companies  and  allowing  the  City  to  enter  imme- 
diately into  the  use  of  such  property,  in  whicli  case  no  awards  shall  be  made  for 
the  value  of  any  franchise  granted  by  the  City. 

I  am  informed  by  the  Chief  Engineer  of  the  Dock  Department  that  that  De- 
partment's plans  do  not  contemplate  the  operation  of  a  terminal  railroad  by  the 
City  in  the  vicinity  of  the  tracks  proposed  by  this  Company  or  the  establishment  of 
a  City  terminal  under  the  act  of  1911  as  amended.  This  property,  together  with  the 
property  lying  south  thereof,  before  referred  to,  seems  to  be  all  the  large  vacant 
tracts  in  the  vicinity  capable  of  development  for  freight  terminal  purposes,  and  it 
is  entirely  isolated  from  any  other  terminal  property.  Therefore,  should  the  City 
construct  or  operate  a  terminal  railroad,  it  must  necessarily  be  used  in  connection  with 
this  property  only,  and  it  is  quite  unlikely  that  the  City  will,  within  the  next  twenty- 
five  years  at  least,  consider  operating  a  terminal  railroad  within  this  area. 

For  these  reasons  the  length  of  the  term  has  been  fixed  for  approximately  twenty- 
five  years,  which  is  perhaps  the  shortest  term  which  the  Company  could  conscienciously 
accept,  in  view  of  the  tremenduous  investment  which  must  be  made  in  this  vicinity, 
depending  largely  upon  this  railroad  connection. 

Commencement  and  completion  of  construction.  It  will  be  noticed  that  by  far 
the  larger  part  of  the  proposed  street  occupation  will  be  by  switches  turning  into 
private  property,  the  main  line  being  parallel  and  adjacent  to  Nott  Avenue,  en- 
tirely upon  private  property,  with  the  exception  of  the  street  crossings  at  right 
angles.  The  necessity  for  any  particular  private  property  connection  will  cmly 
arise  upon  the  development  of  that  property  by  the  construction  thereon  of  buildings. 
In  view  of  this,  the  Company  is  required  to  construct  any  track  authorized  within 
sixty  days  after  application  for  railroad  service  has  been  made  by  an  owner  or  an 
occupant  of  the  property  with  which  such  track  is  proposed  to  connect,  or  in  case  the 
necessary  consents  of  property  owners  are  not  obtained,  within  sixty  days  after  the 
issuance  of  an  order  by  the  Appellate  Division  in  lieu  of  such  property  owners'  con- 
sents, pursuant  to  the  Railroad  Law.  In  this  respect  this  clause  differs  from  that 
usually  employed,  it  being  the  custom  to  require  the  completion  of  construction  within 
a  fixed  period  after  the  consents  of  property  owners  have  been  obtained. 


8 

Protection  of  street  crossings.  The  contract  requires  that  if  the  tracks  are  to  be 
permitted  at  the  grade  of  the  streets,  flagmen  shall  be  stationed  at  all  points  necessary 
to  exclude  pedestrians  and  vehicles  from  the  tracks  when  trains  are  operated  thereon, 
and  that  vehicles  or  pedestrians  shall  not  be  prevented  from  crossing  the  tracks  by  cars 
or  trains  at  any  time  for  a  period  greater  than  live  consecutive  minutes  at  one  time  and 
that  the  aggregate  of  such  periods  shall  not  exceed  ten  minutes  at  any  hour  between 
seven  o'clock  a.  m.  and  six  o'clock  p.  m.  These  provisions  are  similar  to  those  which 
have  been  inserted  in  consents  for  similar  privileges  heretofore  granted  by  the  Board. 

Pazing  of  streets:  snoixj  removal.  In  view  of  the  large  number  of  switches  or 
turnouts  in  that  portion  of  Nott  Avenue  between  Meadow  Street  and  School  Street 
and  Anable  Avenue  between  Orton  Street  and  School  Street,  the  contract  has  been 
drawn  to  require  the  Company  to  pave  the  entire  roadways  between  those  limits  in- 
stead of  between  the  rails  of  the  tracks  and  two  feet  outside  thereof.  In  all  other 
cases  the  Company  is  required  to  pave  between  the  tracks  and  two  feet  outside  thereof. 
The  removal  of  snow  and  ice  by  the  Company  within  llie  same  limits  is  alsn  required. 

Compensation  and  Security  Deposit.  It  has  been  the  custom  in  fixing  the  rate  of 
compensation  for  grants  of  this  character  to  base  the  charge  upon  the  occupation  of 
the  street  and  use  the  assessed  valuation  as  a  basis  of  computation.  This  method  has 
been  used  somewhat  in  this  case,  but  the  annual  payment  during  the  first  period  of 
ten  years  has  been  adjusted  to  meet  the  objections  of  the  Company.  It  is  believed  that 
during  the  Hrst  years  of  operation  and  prior  to  the  time  when  a  large  development 
takes  place  upon  the  property,  the  railroad  would  yield  no  profits,  but  on  the  contrary 
would  be  operated  at  a  loss.  In  consequence  of  this,  the  annual  payments  during  that 
period  have  been  somewhat  reduced  from  those  first  proposed.  The  compensation 
recommended  and  fixed  by  the  contract  is: 

(a)  Fifteen  thousand  dollars  ($15,000)   initial  payment. 

(b)  During  the  portion  of  the  grant  expiring  on  January  1,  1924,  an  annual  sum  of 
two  thousand,  five  hundred  dollars  ($2,500). 

During  the  remainder  of  the  initial  term  an  annual  sum  of  ten  thousand  dollars 
($10,000). 

The  annual  payments  are  made  to  begin  on  January  1,  1914.  The  reason  for  this 
is  that  some  of  the  tracks  for  which  authority  is  requested  have  already  been  con- 
structed, particularly  those  proposed  on  Nott  Avenue.  Little  use  has  been  made  of 
these  tracks  except  for  the  delivery  of  material  used  in  the  construction  of  buildings 
on  the  property. 

The  sum  of  ten  thousand  dollars  ($10,(XX)),  either  in  cash  or  securities,  is  required 
to  insure  the  faithful  performance  of  the  terms  and  conditions  of  the  contract.  This 
sum  is  to  be  deposited  with  the  Comptroller. 

On  December  12,  1913,  a  communication  was  addressed  to  the  President  of  the 
Borough  of  Queens,  requesting  him  to  examine  the  petition  and  make  any  suggestions 
he  saw  fit  for  conditions  to  govern  the  grant.  In  his  reply  on  January  2,  1914,  he 
stated  that  the  only  conditions  which  he  recommended  be  inserted  in  the  contract  are 
requirements  for  the  paving  of  the  portions  of  the  streets  occupied,  the  lighting  and 
safeguarding  of  the  railroad  crossings  during  operations  and  the  supporting  of  the 
tracks  during  the  subsurface  construction  on  the  streets  crossed,  at  the  expense  of  the 
railroad  corporation. 

All  the  conditions  suggested  by  the  President  of  the  Borough  of  Queens,  with  the 
exception  of  the  one  which  would  require  the  lighting  of  the  streets,  are  those  which 
are  usually  employed  in  railroad  grants  of  this  character  and  have  been  inserted  in  the 
contract,  the  modifications  of  some  of  which  are  discussed  herein.  The  lighting  of 
streets  is  a  condition  which  has  never  been  included  in  a  grant  for  the  occupation  of 
streets  by  a  railroad,  and  it  does  not  appear  to  be  an  obligation  which  a  railroad  com- 
pany should  be  called  upon  to  fulfill.  However,  if  the  Board  should  decide  that  the 
Company  should  light  these  streets,  I  should  be  glad  to  take  it  up  vs'ith  the  Company 
with  a  view  to  obtaining  such  a  concession. 

On  February  8,  1914,  a  tentative  form  of  contract  was  submitted  to  the  Commis- 
sioner of  Docks  with  a  request  that  he  examine  the  same  to  ascertain  if  there  are  any 
special  conditions  which  he  desired  inserted.  In  reply,  under  date  of  February  27, 
1914.  he  states  that  he  believes  that  the  conditions  contained  in  the  proposed  contract 
as  affecting  the  Department  of  Docks  and  Ferries  would  safeguard  the  interests  of  the 
City. 

The  form  of  contract  has  been  submitted  to  the  Company  and  several  conferences 
have  been  had  with  its  representatives  in  relation  to  the  terms  and  conditions  con- 
tained therein.  It  is  believed  that  the  contract  as  submitted  is  acceptable  to  the  Com- 
pany. 

The  form  of  contract  has  been  submitted  to  the  Corporation  Counsel  for  his  ap- 


proval  as  to  form.  If  his  approval  is  received  prior  to  the  mcetinfj  at  which  this  re- 
port shall  be  presented,  then  if  the  Board  sees  tit  to  grant  the  franchise  in  the  form  so 
approved,  it  may,  since  the  hearing  on  the  application  has  already  been  held,  adopt  a 
resolution  tentatively  approving  the  contract,  entering  the  same  upon  the  minutes  Qf 
the  Board  and  fixing  a  date  for  final  public  hearing,  after  which  final  action  may  be 
taken.  Should  the  Board  desire  to  take  such  action,  it  is  suggested  that  May  1,  1914, 
be  fixed  as  the  date  for  the  final  public  hearing.  .Advance  copies  of  this  report  will 
be  forwarded  to  the  Committee  on  Port  and  Terminal  Facilities.    Respectfully, 

HARRY  P.  NICHOLS,  Engineer,  Chief  of  Bureau. 


10 

Decnon  Terminal  Railroad  Corporation. 
Proposed  Form  of  Contract. 

This  contract,  made  and  executed  in  duplicate  this  day  of  ,   19    , 

by  and  between  The  City  of  New  York  (hereinafter  called  the  City),  party  of  the 
first  part,  by  the  Mayor  of  said  City,  acting  for  and  in  the  name  of  said  City,  under 
and  in  pursuance  of  the  authority  of  the  Board  of  Estimate  and  Apportionment  of 
said  City  (hereinafter  called  the  Board),  and  the  Degnon  Terminal  Railroad  Corpora- 
tion   (hereinafter  called  the  Company),  party  of  the  second  part,  witnesseth; 

In  consideration  of  the  mutual  covenants  and  agreements  herein  contained,  the 
parties  hereto  do  hereby  covenant  and  agree  as  follows : 

Section  1.  The  City  hereby  grants  to  the  Company,  subject  to  the  conditions 
and  provisions  hereinafter  set  forth,  the  right  and  privilege  to  construct,  maintain 
and  operate  railroad  tracks  in  the  Borough  of  Queens  cither  at  the  same  grade  as  the 
surface  of  the  streets,  or  above  or  below  the  grade  thereof,  as  shall  be  determined  by 
the  Public  Service  Commission  for  the  First  District  of  ihc  State  of  New  York, 
pursuant  to  law,  for  the  purpose  of  conveying  goods,  wares  and  merchandise  only, 
in  the  Borough  of  Queens,  City  of  New  York,  the  centre  lines  of  which  arc  as  follows : 

1.  A  double  track  crossing  Pearson  Street  parallel  to  Meadow  Street  and  about 
twelve   (12)   feet  southeasterly  therefrom. 

2.  A  double  track  beginning  on  the  southwesterly  side  of  Anable  Avenue  about 
twelve  (12)  feet  southeasterly  from  the  southeasterly  side  of  Meadow  Street;  thence 
northeasterly  in  a  curve  across  Anable  Avenue  to  a  point  on  the  northeasterly  side 
thereof. 

3.  A  double  track  crossing  Creek  Street  parallel  to  Nott  Avenue  and  about 
twelve   (12)    feet  southerly  therefrom. 

4.  A  double  track  crossing  Orton  Street  parallel  to  Nott  Avenue  and  about 
twelve   (12)    feet  southerly  therefrom. 

5.  A  double  track  crossing  Manly  Street  parallel  to  Nott  Avenue  and  about 
twelve  (12)   feet  southerly  therefrom. 

6.  A  single  track  crossing  Nott  Avenue  at  right  angles  near  the  center  of  the 
block  between  Orton  Street  and  Manly  Street. 

7.  A  single  track  beginning  at  a  point  on  the  northwesterly  side  of  Davis  Street 
about  eight  (8)  feet  southwesterly  from  the  intersection  of  said  northwesterly  side 
of  Davis  Street  with  the  southwesterly  side  of  Pearson  Street:  thence  southerly  in 
a  curve  across  Davis  Street  to  the  southeasterly  side  thereof  at  a  point  about  seventy 
(70)  feet  southwesterly  from  the  intersection  of  said  southeasterly  side  of  Davis 
Street  with  the  southwesterly  side  of  Pearson  Street. 

8.  A  single  track  beginning  at  a  point  on  the  northwesterly  side  of  Creek  Street 
near  the  center  line  of  the  block  between  Anable  .Avenue  and  Pearson  Street;  thence 
southerly  in  a  curve  across  Creek  Street  to  a  point  in  the  southeasterly  side  of  Creek 
Street  about  two  hundred  and  fifty-five  (255)  feet  northerly  from  the  intersection  of 
said  southeasterly  side  of  Creek  Street  and  the  northerly  side  of  Hunters  Pomt 
Avenue.  .  _      ,    _ 

9.  A  single  track  beginning  at  a  point  on  the  westerly  side  of  Creek  Street  about 
seventy-two  (72)  feet  southerly  from  the  intersection  of  said  westerly  side  of  Creek 
Street  with  the  southerly  side  of  Nott  Avenue;  thence  southeasterly  in  a  curve  across 
Creek  Street  to  the  easterly  side  thereof  at  a  point  about  one  hundred  and  sixty-seven 
(167)  feet  southerly  from  the  intersection  of  said  easterly  side  of  Creek  Street  with 
the  southerly  side  of  Nott  Avenue. 

10.  A  single  track  beginning  at  a  point  in  the  westerly  side  of  Creek  Street  about 
three  (3)  feet  southerly  from  the  intersection  of  said  westerly  side  of  Creek  Street 
with  the  southerly  side  of  Nott  Avenue :  thence  northeasterly  in  a  curve  across  Creek 
Street  and  Nott  Avenue  to  a  point  on  the  northerly  side  of  Nott  Avenue  about  sixty- 
five  (65)  feet  easterly  from  the  intersection  of  said  northerly  side  of  Nott  Avenue 
with  the  easterly  side  of  Creek   Street. 

11.  A  single  track  beginning  at  a  point  on  the  southerly  side  of  Nott  Avenue 
about  two  hundred  and  twenty-five  (225)  feet  easterly  from  the  intersection  of  said 
southerly  side  of  Nott  Avenue  with  the  easterly  side  of  Creek  Street;  thence  north- 
easterly in  a  curve  across  Nott  Avenue  to  a  point  on  the  northerly  side  thereof  about 
sixty-five  (65)  feet  easterly  from  the  intersection  of  said  northerly  side  of  Nott  Ave- 
nue with  the  easterly  side  of  Dutch  Kills  Place. 

12.  -A  single  track  beginning  at  a  point  on  the  southerly  side  of  Nott  Avenue 
about  two  hundred  and  ninety-five  (295)  feet  westerly  from  the  intersection  of  said 
southerly  side  of  Nott  Avenue  with  the  westerly  side  of  Orton  Street ;  thence  north- 
easterly in  a  curve  across  Nott  Avenue  to  a  point  on  the  northerly  side  thereof  about 


11 

ten   (10)    feet  easterly  from  the  intersection  of  said  northerly  side  of  Nott  Avenue 
with  the  easterly  side  of  Queens  Place. 

13.  A  single  track  beginning  at  a  point  on  the  southerly  side  of  Nott  Avenue 
about  one  hundred  and  fifty  (150)  feet  westerly  from  the  intersection  of  said  south- 
erly side  of  Nott  Avenue  with  the  westerly  side  of  Orton  Street;  thence  northeasterly 
in  a  curve  across  Nott  Avenue  to  a  point  on  the  northerly  side  thereof  about  fifty  (50) 
feet  westerly  from  the  intersection  of  said  northerly  side  of  Nott  Avenue  with  the 
westerly  side  of  Orton  Street. 

14.  A  single  track  beginning  at  a  point  on  the  westerly  side  of  Orton  Street 
about  three  (3)  feet  southerly  from  the  intersection  of  said  westerly  side  of  Orton 
Street  with  the  southerly  side  of  Nott  Avenue ;  thence  northeasterly  in  a  curve  across 
Orton  Street  and  Nott  Avenue  to  a  point  on  the  northerly  side  of  Nott  Avenue  about 
fifty-nine  (59)  feet  easterly  from  the  intersection  of  the  said  northerly  side  of  Nott 
Avenue  with  the  easterly  side  of  Orton  Street. 

15.  A  single  track  crossing  Nott  Avenue  at  right  angles  near  the  center  line  of 
the  block  between   Manly   Street  and  Mount   Street. 

16.  A  single  track  crossing  Nott  Avenue  at  right  angles  near  the  center  line  of 
the  block  between  Mount  Street  and   School  Street. 

17.  A  single  track  crossing  Anable  Avenue  at  right  angles  near  the  center  line 
of  the  block  between  Orton  Street  and  Manly  Street. 

18.  A  single  track  crossing  Anable  Avenue  at  right  angles  near  the  center  line  of 
the  block  between  Manly  Street  and  Mount  Street. 

19.  A  single  track  crossing  Anable  Avenue  at  right  angles  near  the  center  line 
of  the  block  between  Mount  Street  and  School  Street. 

20.  A  single  track  beginning  at  a  point  in  Creek  Street  on  the  center  line  of  the 
track  hereinbefore  described  as  No.  9;  thence  southeasterly  in  a  curve  to  a  point  on 
the  easterly  side  of  Creek  Street  about  one  hundred  and  thirty-seven  (137)  feet  south- 
erly from  the  intersection  of  said  easterly  side  of  Creek  Street  with  the  southerly  side 
of  Nott  Avenue. 

21.  A  single  track  beginning  at  a  point  on  the  westerly  side  of  Manlv  Street 
about  three  (3)  feet  southerly  from  the  intersection  of  said  westerly  side  of  Manly 
Street  with  the  southerly  side  of  Nott  Avenue ;  thence  northeasterlv  in  a  curve  across 
Manly  Street  and  Nott  Avenue  to  a  point  on  the  northerlv  side  of  Nott  Avenue  about 
fifty-nine  (59)  feet  easterly  from  the  intersection  of  said' northerly  side  of  Nott  Ave- 
nue with  the  easterly  side  of  Manly  Street. 

22.  A  single  track  beginning  at  a  point  on  the  westerly  side  of  Mount  Stree* 
about  two  (2)  feet  southerly  from  the  intersection  of  said  westerly  side  of  Mount 
Street  with  the  southerly  side  of  Nott  Avenue;  thence  northeasterly  in  a  curve  across 
Mount  Street  and  Nott  Avenue  to  a  point  on  the  northerly  side  of  Nott  .■X venue  about 
fifty-nme  (59)  feet  easterly  from  the  intersection  of  said  northerlv  side  of  Nott  \ve- 
nue  with  the  easterly  side  of  Mount  Street. 

23.  A  single  track  beginning  at  a  point  on  the  northwesterly  side  of  Pearson 
Street  about  eighteen  (18)  feet  southeasterly  from  the  intersection  of  said  northeast- 
erly side  of  Pearson  Street  with  the  southeasterly  side  of  Meadow  Street;  thence 
southwesterly  in  a  curve  across  Pearson  Street  to  a  point  on  the  southwesterly  side 
thereof  about  fifty  (oO)  feet  southeasterly  from  the  intersection  of  said  southwesterlv 
side  of  Pearson  Street  with  the  southeasterly  side  of  Meadow  Street. 

The  said  tracks  hereby  authorized  are  shown  upon  a  map  entitled  : 

"Map  showing  proposed  tracks  of  Degnon  Terminal  Railroad  Corporation  to 
be  located  in  First  Ward,  Borough  of  Queens,  in  the  territorj'  bounded  on  the 
east  by  School  Street,  on  the  south  bv  Hunters  Point  Avenue,  on  the  west  and 
northwest  by  Meadow  Street  and  on  the  north  by  Thomson  .\venue     To  accom- 
pany petition  verified  December  10,  1913,  to  the  Board  of  Estimate  and    Appor- 
tionment, "  ' ' 
—and  signed  by  Alfred  .\.  Stuart.  President,  and  Norman  G.  Degnon    Engineer-  a 
copy  of  which  is  attached  hereto,  is  to  be  deemed  a  part  of  this  contract,  is  to  be  con- 
strued with  the  text  thereof,  and  is  to  be  substantially  followed,  provided  that  devi- 
ations therefrom  and  the  description  thereof  which  are  not  inconsistent  with  the  other 
provisions  ot  this  contract  mav  be  permitted  by  resolution  of  the  Board 

This  grant  is  made  with  the  understanding  that  the  tracks  herein  authorized  are 
to  be  operated  as  a  necessary  part  of  the  railroad  of  the  Company,  as  shown  bv  the 
layout  upon  the  map  attached  hereto,  and  is  onlv  granted  upon  condition  that  ill  of 
the  tracks  shown  upon  said  map  whether  upon  private  property  or  upon  streets  or 
avenues  shall  be  operated  as  one  railroad. 

u  ,h^-  "■    ^i-i,^''^ru  °J  ^'^'-'  P"^''ese  is  subject  to  the  following  conditions,  which 
shall  be  complied  with  by  the  Company. 


12 

First — The  consent  in  writing  of  tiie  owners  of  half  in  value  of  the  property 
bounded  on  said  streets  and  avenues  to  the  construction  and  t>peration  of  said  rail- 
road shall  be  obtained  by  the  Company  within  three  (3)  months  from  the  signing  of 
this  contract  by  the  Mayor,  and  a  copy  of  such  consents  shall  be  tiled  with  the  Board 
within  such  time,  or  in  the  event  that  such  consents  cannot  l)e  obtained  within  such 
time,  the  Company  shall,  within  said  three  (J)  months  or  within  one  (1  ) 
month  thereafter,  make  application  to  the  Appellate  Division  of  the  Supreme  Court 
for  the  appointment  of  Commissioners  in  the  manner  provided  by  the  Railroad  Law 
to  determine  if  said  railroad  ought  to  be  constructed;  otherwise  this  grant  shall  cease 
and  determine. 

Second — The  said  right  to  construct,  maintain  and  operate  said  railroad  shall  be 
held  and  enjoyed  by  the  Company  from  the  date  upon  which  this  contract  is  signed  by 
the  Mayor,  until  January  I,  1929.  with  the  privilege  of  renewal  of  said  contract  for  the 
further  period  of  ten   (10)  years,  upon  a  fair  revaluation  of  such  right  and  privilege. 

If  the  Company  shall  determine  to  exercise  its  privilege  of  renewal  it  shall  make 
application  to  the  Board,  or  any  authority  which  shall  be  authorized  by  law  to  act  for 
the  City  in  place  of  the  Board.  Such  application  shall  be  made  at  any  time  not  earlier 
than  two  (2)  years  and  not  later  than  one  (1)  year  before  the  expiration  of  the  orig- 
inal term  of  this  contract.  The  determination  of  the  revaluation  shall  be  sufficient  if 
agreed  to  in  writing  by  the  Company  and  the  Board,  but  in  no  case  shall  the  annual 
rate  of  compensation  to  the  City  be  fixed  at  a  less  amount  than  the  sum  required  to 
be  paid  during  the  last  year  prior  to  the  termination  of  the  original  term  of  this  con- 
tract. 

If  the  Company  and  the  Board  shall  not  reacli  such  agreement  on  or  before  the 
day  one  (1)  year  before  the  expiration  of  the  original  term  of  this  contract,  then 
the  annual  rate  of  compensation  for  such  succeeding  ten  ( 10)  years  shall  be  rcasqii- 
able.  and  either  the  City  (by  the  Board)  or  the  Company  shall  be  bound  upon  request 
of  the  other  to  enter  into  a  written  agreement  with  each  other  fixing  the  rate  of  such 
compensation  at  such  amount  as  shall  be  reasonable,  but  in  no  case  shall  the  annual 
rate  so  fixed  be  less  than  the  sum  required  to  be  paid  for  the  last  year  prior  to  the 
termination  of  the  original  term  of  this  contract,  and  if  the  parties  shall  not  forthwith 
agree  upon  wliat  is  reasonable,  then  the  parties  shall  enter  into  a  written  agreement 
fixing  such  annual  rate  and  at  such  amount  as  shall  be  determined  by  three  disinterested 
freeholders  selected  in  the  following  manner : 

One  disinterested  freeholder  shall  be  chosen  by  the  Board ;  one  disinterested 
freeholder  shall  lie  chosen  by  tlie  Company;  these  two  shall  choose  a  tliird  disintere--tc(l 
freeholder,  and  the  three  so  chosen  shall  act  as  appraisers  and  shall  make  the  revalua- 
tion aforesaid.  Such  appraisers  shall  be  chosen  at  least  six  (6)  months  prior  to 
the  expiration  of  this  original  contract,  and  their  report  shall  be  filed  with  the  Board 
within  three  (3)  months  after  they  are  chosen.  They  shall  act  as  appraisers  and 
not  as  arbitrators.  They  may  base  their  judgment  upon  their  own  experience  and 
upon  such  information  as  they  may  obtain  by  inquiries  and  investigations,  without 
the  presence  of  either  party.  They  shall  have  the  right  to  examine  any  of  the  books 
of  the  Company  and  its  officers  under  oalli.  The  valuations  so  ascertained,  tixed  and 
determined  shjill  be  conclusive  upon  both  parties,  but  no  annual  sum  shall,  in  any 
event  be  less  than  the  sum  required  to  be  paid  for  the  last  year  of  the  original  term 
of  this  contract.  If  in  any  case  the  annual  rate  shall  not  be  fixed  prior  to  the  ter- 
mination of  the  original  term  of  this  contract,  then  the  Company  shall  pay  the  an- 
nual rate  thcrctofnre  prevailini;  until  the  new  rate  shnll  be  determined,  and  shall  then 
make  up  to  the  City  the  amount  of  any  excess  of  the  annual  rate  then  determined 
over  the  previous  annual  rate.  The  compensation  and  expenses  of  th'-  yi'd  appraisers 
shall  be  borne  jointly  by  the  City  and  the  Company  each  paying  one-half  thereof. 

Third — Upon  the  termination  of  this  original  contract,  or  if  the  sarne  be  renewed, 
then  at  the  termination  of  the  said  renewal  term,  or  upon  the  termination  of  the 
rights  hereby  granted  for  any  cause  or  upon  the  dissolution  of  the  Company  before 
termination,  the  tracks  and  equipments  of  the  Company  constructed  pursuant  to 
this  contract  within  the  streets  and  avenues  shall  become  the  property  of  the  City 
without  cost,  and  the  same  may  be  used  or  disposed  of  by  the  City  for  any  purpose 
whatsoever,  or  the  same  may  be  leased  to  any  company  or  individual. 

Fourth— The  Company  shall  pay  to  the  City  for  the  privilege  hereby  granted 
the  following  sums  of  money: 

(a)  The  sum  of  fifteen  thousand  dollars  ($15,000)  in  cash  within  thirty  (30) 
days  after  the  date  on  which  this  contract  is  sig^ned  by  the  Mayor  and  before  any- 
thing is  done  in   exercise  of  the   privilege  hereby  granted. 

(b)  During  the  first  term  expiring  January  1,  1924,  an  annual  sum  of  two  thou- 
sand five  hundred  dollars  ($2,500). 


13 

During  the  remainder  term  of  five  (5)  years  an  annual  sum  of  ten  thousand  dol- 
lars ($10,(X)0). 

The  annual  charges  shall  commence  from  January  1,  1914. 

All  annual  charges  as  above  shall  be  paid  into  the  treasury  of  the  City  on  No- 
vember 1  of  each  year  and  shall  be  for  the  amount  due  to  September  30  next  pre- 
ceding. Provided  that  the  first  annual  payment  shall  be  only  for  that  proportion  of 
the  first  annual  charge  as  the  time  between  the  date  upon  which  this  contract  is 
signed  by  the  Mayor  and  September  30  following  shall  bear  to  the  whole  of  one 
year. 

Any  and  all  payments  to  be  made  by  the  terms  of  this  contract  to  the  City  by 
the  Company,  shall  not  be  considered  in  any  manner  in  the  nature  of  a  tax.  but  such 
payments  shall  be  made  in  addition  to  any  and  all  ta.xes  of  whatsoever  kind  or  de- 
scription, now  or  hereafter  required  to  be  paid  by  any  ordinance  of  the  City,  or  reso- 
lution of  the  Board,  or  any  law  of  the  State  of  New  York. 

Fifth — The  annual  charges  or  payments  shall  continue  throughout  the  whole  term 
of  this  contract  (whether  original  or  renewal),  notwithstanding  any  clause  in  any 
statute  or  in  the  charter  of  any  other  railway  or  railroad  company  providing  for 
payment  for  railway  or  railroad  rights  or  franchises  at  a  different  rate,  and  no 
assignment,  lease  or  sublease  of  the  rights  or  privileges  hereby  granted  (whether 
original  or  renewal),  or  of  any  part  thereof,  or  of  any  of  the  routes  mentioned 
herein,  or  of  any  part  thereof  shall  be  valid  or  effectual  for  any  purpose  unless  the 
said  assignment,  lease  or  sublease  shall  contain  a  covenant  on  the  part  of  the  assignee 
or  lessee  that  the  same  is  subject  to  all  the  conditions  of  this  contract;  and  that  the 
assignee  or  lessee  assumes  and  will  be  bound  by  all  of  said  conditions,  and  especially 
said  conditions  as  to  payments,  anything  in  any  statute  or  in  the  charter  of  such  as- 
signee or  lessee  to  the  contrary  notwithstanding,  and  that  the  said  assignee  or  lessee 
waives  any  more  favorable  conditions  created  by  such  statute  or  its  charter,  and  that 
it  will  not  claim  by  reason  thereof  or  otherwise  exemption  from  liability  to  perform 
each  and  all  of  the  conditions  of  this  contract. 

Sixth — Nothing  in  this  contract  shall  be  deemed  to  affect  in  any  way  the  right  of 
the  City  to  grant  to  any  person  or  corporation  a  franchise  or  right  to  use  the  streets 
hereinbefore  mentioned,  or  any  part  of  them,  for  railroad  purposes,  and  the  Com- 
pany shall  not  at  any  time  oppose,  but  shall  consent  to  the  construction  and  operation 
of  a  railroad  by  any  such  other  corporation  or  individual  which  may  receive  a 
franchise  therefor  from  the  City:  provided,  however,  that  nothing  in  this  clause  con- 
tained shall  estop  the  Company  from  appearing  before  the  Board  and  being  heard  on 
any  application  for  rights  in  said  streets. 

Seventh — If  the  right  of  way  on  private  property  upon  which  the  Company  pro- 
poses to  operate  or  any  location  of  track  herein  authorized  (all  as  shown  on  the 
map  hereto  attached)  shall  be  crossed,  intersected  or  joined  by  the  ris;ht  of  wav 
or  tracks  of  another  railroad  corporation,  then  the  Company  shall  unite  with  such 
corporation  in  forming  the  necessary  connections  between  the  railroads  of  the 
Company  and  such  corporation,  and  shall  grant  the  requisite  facilities  therefor, 
whether  the  tracks  on  tlie  right  of  way  of  such  corporation  are  at  the  same  or  a 
different  grade  from  the  tracks  of  the  Company  at  the  point  of  such  crossing  or 
intersection. 

In  case  the  Company  and  such  corporation  cannot  agree  upon  the  amount  of  com- 
])ensation  to  be  paid  therefor,  such  compensation  shall  be  fixed  in  the  manner  pro- 
vided in  Section  22  of  the  Railroad  Law. 

When  such  railroads  shall  be  so  connected,  the  Company  shall  receive  from  such 
other  corporation,  and  forward  to  their  destination,  all  goods,  merchandise  and  other 
property  intended  for  points  on  its  railroad,  and  receive  and  forward  to  the  railroad 
of  such  other  corporation  all  goods,  merchandise  and  other  property  shipped  by  way 
of  the  Company's  railroad  and  intended  for  points  thereon,  with  the  same  despatch  and 
at  a  rate  of  freight  not  exceeding  the  local  tariff  rate  charged  for  similar  goods, 
merchandise  and  other  property  received  at  or  forwarded  from  the  same  points  for 
individuals  and  other  corporations. 

The  intent  and  purpose  of  the  foregoing  is  to  provide  for  the  use  of  the  Company's 
railroad  by  any  other  railroad  which  may  be  constructed  in  the  vicinity,  so  that  such 
other  railroad  may  be  afforded  an  outlet  and  rail  connection  with  a  trunk  line  railroad 
or  a  water  connection  with  the  Dutch  Kills  Creek  by  means  of  the  railroad  of  the 
Company. 

Eighth — The  rights  and  privileges  hereby  granted  shall  not  be  assigned,  either  in 
whole  or  in  part,  or  leased  or  sublet  in  any  manner,  nor  shall  the  title  thereto,  or 
right,  interest  or  property  therein,  pass  to  or  vest  in  any  other  person  or  corporation 
whatsoever,  either  by  the  act  of  the  Company,  or  by  operation  of  law,  whether  under 


14 

the  provisions  of  the  statutes  relating  to  the  consolidation  or  merger  of  corporations  or 
otherwise,  without  the  consent  of  the  City."  acting  hy  the  Board,  evidenced  by  an 
instrument  under  seal,  anvthini;  herein  contained  to  the  contrary  thereof  in  anywise 
notwithstanding,  and  the  granting,  giving  or  waiving  of  any  one  or  more  of  such 
cosents  shall  not  render  unnecessary  any  suhscqucnt  consent  or  consents. 

Ninth — Should  it  he  deemed  advisable  by  the  Board  at  any  time  during  the  term 
of  this  contract  to  require  the  extension  of  the  tracks  of  the  Company  to  reach  property 
owned  by  any  individual  or  corporation  making  application  to  the  Board  for  such  ex- 
tension and  the  Board  shall  so  order,  then  the  Company  shall,  immediately  after  reach- 
ing an  agreement  with  such  applicants  with  respect  to  the  terms  upon  which  such  ex- 
tension shall  be  constructed,  or  in  lieu  thereof  a  determination  of  the  arbitrators,  as 
herein  provided,  apply  fur  and  accept  a  franchise  upon  terms  and  conditions  similar 
lo  those  contained  herein  to  extend  its  tracks  beyond  the  tracks  now  planned  by  the 
Company,  as  indicated  by  the  layout  of  track  shown  upon  the  map  attached  hereto, 
to  the  property  of  such  applicant,  and  upon  receiving  such  a  franchise  the  Company 
shall,  upon  terms  to  be  agreed  upon  between  the  petitioner  and  the  Company,  so  extend 
its  tracks  and  deliver  and  receive  freight  for  shipment  to  all  persons  desiring  such 
service  along  the  line  of  such  extension  or  extensions;  such  service  to  be  performed  at 
the  rates  charged  for  similar  service  upon  the  railroad  herein  authorized,  or  as  may 
be  fixed  by  the  Board. 

In  case  the  Company  and  the  applicants  for  such  extension  cannot  agree  upon 
the  terms  upon  which  such  extension  shall  he  constructed,  including  the  division,  if  any. 
of  the  cost  of  the  extension  and  of  the  maintenance  thereof,  then  such  terms  shall  be 
determined  and  fixed  by  tliree  arbitrators  selected,  in  the  following  manner. 

One  fit  and  impartial  person  shall  be  chosen  by  the  Company;  one 
fit  and  impartial  i)ers(in  shall  be  chosen  by  the  applicant  or  applicants  for 
each  extension  and  the  two  so  chosen  shall  choose  a  third  fit  and  impar- 
tial person.  The  decision  under  oath  of  any  two  of  such  persons  who  shall  be  so 
selected  shall  be  final  and  conclusive.  If  either  the  Company  or  such  applicant  fails  to 
appoint  an  arbitrator,  as  herein  provided,  or  should  the  first  two  arbitrators  fail  to 
agree  on  the  selection  of  a  third  arbitrator  within  thirty  days  after  the  first  two 
arbitrators  .shall  lie  chosen,  or  if  no  two  arbitrators  so  selected  shall  agree  upon  the 
terms  upon  which  such  extension  shall  be  constructed  and  maintained  within  sixty 
(60)  days  after  the  arbitrators  shall  be  so  selected,  then  such  terms  may  be  fixed 
by  a  Commissioner  appointed  by  the  Supreme  Court  on  the  appHcation  of  either 
party. 

Tenth — The  Company  shall  commence  construction  of  any  portion  of  the  railroad 
herein  authorized  which  shall  be  necessary  to  transport  freight  to  or  from  property 
proposed  to  be  so  served,  as  indicated  by  the  layout  of  the  railroad  shown  upon  a  map 
attached  hereto,  within  thirty  (30)  days  from  the  date  upon  which  application  for 
service  shall  be  made  by  the  owner  or  occupier  of  sucli  property,  provided  that  the 
consents  of  the  property  owners,  as  herein  required  have  been  obtained,  or.  in  lieu 
thereof,  an  order  of  the  Appellate  Division  of  the  Supreme  Court  made  pursuant  to 
Section  174  of  the  Railroad  Law  Cfnifirming  the  determination  of  the  commissioners 
appointed  thereunder  that  such  railroad  ought  to  be  constructea,  has  been  issued. 
If  the  consents  of  property  owners  have  not  been  obtained,  nor  the  order  of  the 
Appellate  Division  issued,  at  the  time  when  application  for  the  use  of  such  railroad  is 
made  by  such  owner  or  occupier  of  such  property,  then,  the  Company  shall  commence 
the  construction  of  that  portion  of  the  railroad  for  which  application  has  been  so 
made  within  thirty  (30)  days  after  the  obtaining  of  such  consents  or  the  issuance 
of  such  order.  The  Company  shall  complete  such  portion  of  said  railroad  and  place 
the  same  in  operation  within  sixty  (60)  days  after  such  application  has  been  made  by 
such  owner  or  occupier  of  said  property,  or  if  neither  the  consents  of  the  property 
owners  or  said  order  of  the  .Appellate  Division  of  the  Supreme  Court  has  been 
obtained  at  the  time  such  application  is  made,  then  within  sixty  (CO)  days  from  the  date 
of  filing  such  consents  or  the  date  of  such  order.  If  the  company  sliall  fail  to  complete 
the  construction  of  the  railroad  and  put  the  same  in  operation  as  herein  required,  all 
rights  hereunder  shall  cease  and  determine,  and  all  sums  paid,  or  which  may  be  deposited 
with  the  Comptroller  of  the  City,  as  hereinafter  provided,  shall  thereupon  be  for- 
feited to  the  City.  Provided,  h.^wever.  that  the  period  for  commencement  and  the 
period  for  completion  and  placing  the  railroad  in  operation  may  be  extended  by 
the  Board ;  and  provided,  further,  that  when  the  commencement  or  completion  of  said 
construction  shall  be  prevented  by  legal  proceedings  in  any  court  or  by  works  of 
public  improvement,  or  from  other  causes  not  witliin  control  of  the  Company,  the  , 
time  for  the  commencement  or  completion  of  such  construction,  may  be  ej^endeU  "C- 
for  the  period  of  such  prevention,  but  no  delay  shall  be  allowed  for  unless  the  court 


13 

proceedings  shall  be  diligently  prosecuted  by  the  Company;  and  provided  further  that 
in  no  case  shall  such  delay  be  deemed  to  begin  until  the  Company  shall  have  given  written 
notice  to  the  Board  of  any  such  court  proceedings  or  other  occasion  of  delay,  and 
deliver  to  the  Board  copies  of  any  injunction  or  other  orders,  and  the  papers  upon 
which  the  same  shall  have  been  granted,  and  unless  upon  the  request  of  the  Board 
the  Company  shall,  in  writing,  consent  that  the  Board  either  in  its  own  name  as  a 
party,  or  in  the  name  of  the  City  as  a  party,  may  intervene  in  any  such  proceedings. 

Eleventh — If  the  grade  of  the  tracks  or  any  portion  thereof  herein  authorized 
be  at  any  time  during  the  existence  of  this  contract  changed  to  a  position  either  above 
or  below  the  surface  of  the  streets  or  avenues,  then  the  Company  shall  pay  to  the  City 
any  sum  or  sums  which  the  City  may  be  required  by  law  to  pay  towards  the  change 
of  grade  of  such  tracks. 

Twelfth — Said  railroad  shall  be  constructed,  maintained  and  operated  subject 
to  the  supervision  and  control  of  all  the  authorities  of  the  City  who  have  jurisdiction 
in  such  matters,  as  provided  by  the  Charter  of  the  City. 

No  construction  upon  said  railroad  shall  be  commenced  until  written  permits 
have  been  obtained  from  the  proper  City  officials. 

In  any  permits  so  issued  such  officials  may  also  impose  such  conditions,  as  a 
condition  of  the  granting  of  the  same,  as  are  necessary  for  the  purpose  of  protecting 
any  structures  in  the  streets  and  avenues,  over  which  such  officials  have  jurisdiction 
and  the  Company  shall  comply  with  such  conditions. 

The  electrical  equipment  to  be  installed  by  the  Company  for  the  operation  of  the 
railroad  within  the  limits  of  the  City,  whether  the  same  be  upon  streets  or  avenues 
or  upon  private  property,  shall  be  constructed  and  maintained  under  the  supervision 
and  control  of  the  Commissioner  of  Water  Supply,  Gas  and  Electricity. 

Thirteenth — The  work  of  construction  of  the  tracks  hereby  authorized  shall  be 
done  in  such  manner  as  shall  not  substantially  interfere  with  the  ordinary  use  of  any 
street  or  avenue  as  a  public  highway. 

Fourteenth — During  the  period  prior  to  January  1,  1916,  cars  may  be  operated 
upon  said  tracks  by  steam  locomotives  which  shall  be  housed  or  boxed  so  as  to  con- 
form with  the  type  commonly  known  as  the  "dummy  engine."  On  or  before  January 
1.  1916,  the  Company  shall  discontinue  the  use  of  said  dummy  steam  locomotives 
and  operate  said  tracks  by  electric  power  or  any  other  motive  power  which  may  be 
approved  by  the  Board  and  consented  to  by  the  abutting  property  owners  in  accord- 
ance with  the  provisions  of  law  and  by  the  Public  Service  Commission  for  the  First 
District  of  the  State  of  New  York.  It  is  understood,  however,  that  no  overhead 
wires  except  trolley  wires  shall  be  permitted  for  the  operation  of  said  tracks  by  the 
electric  power. 

Fifteenth — Neither  pedestrians  nor  vehicles  shall  be  prevented  from  crossing  the 
tracks  hereby  authorized  by  the  occupation  of  such  tracks  by  cars  or  trains  operated 
thereon,  for  a  greater  period  than  five  (5j  consecutive  minutes  at  any  time,  and  the 
aggregate  of  such  periods  shall  not  exceed  ten  (10)  minutes  in  any  hour  between 
7  o'clock  a.  m.  and  6  o'clock  p.  m. 

Sixteenth — Should  the  Company  be  allowed  to  operate  at  the  same  grade  as  the 
streets  and  avenues,  the  Company  shall  station  flagmen  at  such  points  as  shall  be 
necessary  to  e-xclude  pedestrians  and  vehicles  from  the  tracks  at  all  times  when  cars 
or  trains  shall  be  operated  thereon.  Should  it  seem  necessary  in  the  opinion  of  the 
Board  at  any  time  during  the  term  of  this  contract  that  gates  be  erected,  maintained 
and  operated  across  any  of  the  streets  or  avenues  for  the  purpose  of  excluding 
pedestrians  and  vehicles  from  the  tracks  hereby  authorized,  then  the  Company  shall 
erect,  maintain  and  operate  such  gates  as  may  be  designated  upon  thirty  (30)  days' 
notice  by  the  Board  to  the  Company. 

Seventeenth — .-^s  long  as  the  said  tracks  or  any  portion  thereof  shall  remain  in 
the  streets  and  avenues  during  the  term  of  this  contract  the  Company  shall,  at  its 
own  expense,  set  the  curbs  and  pave  the  entire  roadway  and  sidewalk  and  keep 
the  same  in  permanent  repair  upon  that  portion  of  Nott  Avenue  between  the  south- 
easterly side  of  Meadow  Street  and  the  westerly  side  of  School  Street,  that  portion 
of  Anable  Avenue  between  the  easterly  side  of  Orton  Street  and  the  westerly  side 
of  School  Street  and  those  portions  of  Davis  Street,  Pearson  Street,  Creek  Street, 
Orton  Street,  Manly  Street,  Mount  Street  and  Anable  Avenue,  except  Anable  Avenue 
between  Orton  Street  and  School  Street,  between  the  tracks  and  the  rails  of  the 
tracks  hereby  authorized  in  said  streets  and  avenues  and  for  a  distance  of  two  (2) 
feet  beyond  such  rails  on  either  side  thereof;  all  of  the  work  to  be  done  under  the 
supervision  of  the  local  authorities  in  such  manner  and  at  such  time  as  they  may 
prescribe.  In  case  of  the  neglect  of  the  Company  to  make  pavement  or  repairs  after 
the  expiration  of   twenty    (20)    days'  notice  to  do   so   from  the   President  of  the 


16 

Borough  of  Queens,  said  Prcsidcnl  may  make  ihc  same  at  the  expense  of  the  Com- 
pany, and  the  City  shall  have  the  rigin  to  change  the  material  or  character  of  the 
pavement  of  any  street  or  avenue,  and  in  that  event  the  Company  shall  lie  bound  to 
replace  such  pavement  in  the  manner  directed  by  the  proper  City  official,  at  its  own 
expense,  and  the  provisions  as  to  repairs  herein  contained  shall  apply  to  such 
renewed  or  altered  pavement. 

Eighteenth — Should  the  Company  be  allowed  to  operate  at  the  same  grade  as 
the  streets  and  avenues,  it  shall  at  all  times  keep  that  portion  of  Nott  avenue  between 
the  southeasterly  side  of  Meadow  Street  and  the  westerly  side  of  School  Street,  that 
portion  of  Anable  Avenue  between  the  easterly  side  of  Orton  Street  and  the  westerly 
side  of  School  Street  and  those  portions  of  Davis  Street,  Pearson  Street.  Creek  Street, 
(Jrton  Street,  Manly  Street,  Mount  Street  and  .\nable  .Xvenue  (except  Anable  Avenue 
between  Orton  Street  and  School  Street),  l)etwecn  its  tracks,  the  rails  of  its  tracks 
and  for  a  distance  of  two  (2)  feet  beyond  the  rails,  on  cither  side  thereof,  free  and 
clear  from  ice  and  snow  ;  provided,  however,  that  the  Company  shall,  at  the  option  of 
the  President  of  the  Borough  of  Queens  enter  into  an  agreement  for  each  winter 
season,  or  part  thereof,  to  clean  an  equivalent  amount  of  street  surface  from  house 
line  to  house  line. 

Nineteenth — Should  the  grades  or  lines  of  the  streets  and  avenues  in  which  the 
railroad  is  hereby  authorized  be  changed  at  any  time  after  the  railroad  has  been  con- 
structed and  during  the  term  of  this  contract,  the  Company  shall,  at  its  own  expense, 
change  its  tracks  and  appurtenances  to  conform  with  such  new  grades  and  lines,  and 
during  the  construction  of  any  public  improvement  upon  said  streets  or  avenues  the 
Company  shall  take  care  of  and  protect  the  tracks  and  appurtenances  at  its  own 
expense,  all  to  be  done  subject  to  the  direction  of  the  City  official  having  jurisdiction 
over  the  construction  of  such  change. 

Twentietli — It  is  agreed  that  the  right  hereby  granted  tooperate  a  railroad  shall 
not  be  in  preference  or  in  hindrance  to  public  work  of  the  City,  and  should  the  said 
railroad  in  any  way  interfere  with  the  construction  of  public  works  in  the  streets 
and  avenues,  whether  the  same  is  done  by  the  City  directly  or  by  a  contractor  for  the 
City,  the  Company  shall,  at  its  own  expense,  protect  or  move  the  tracks  and  appur- 
tenances in  the  manner  directed  by  the  City  officials  having  jurisdiction  over  such 
public  work. 

Twenty-first— Any  alteration  to  the  sewerage  or  drainage  systems,  or  to  any  other 
subsurface  or  to  any  surface  structures  in  the  streets,  required  on  account  of  the 
construction  or  operation  of  tlie  railroad,  shall  be  made  at  the  sole  cost  of  the  Com- 
pany, and  in  such  manner  as  the  proper  City  officials  may  prescribe. 

Twenty-second — Said  railroad  shall  be  constructed  and  operated  in  the  latest 
approved  manner  of  railroad  construction  and  operation,  and  it  is  hereby  agreed  that 
the  Board  may  require  the  Company  to  improve  or  add  to  the  railroad  equipment, 
including  rolling  stock  and  railroad  appurtenances,  from  time  to  time,  as  such  additions 
and  improvements  are  necessary,  in  the  opinion  of  the  Board.  Upon  failure  on  the 
part  of  the  Company  to  comply  with  the  direction  of  the  Board  within  a  reasonable 
lime,  the  rights  hereby  granted  shall  cease  and  determine. 

Twenty-third— Tlie  rates  for  carrying  property  upon  the  tracks  hereby  authorized 
shall  in  all  cases  be  reasonable  in  amount,  subject  to  the  control  of  the  Board,  and 
may  be  fixed  by  the  Board  after  notice  to  the  Company,  and  a  hearing  had  thereon, 
and  when  so  fixed  such  rates  shall  be  binding  upon  the  Company,  and  no  rates  in 
excess  of  those  fixed  shall  be  charged  for  such  service. 

Twenty-fourth — The  Company  shall  submit  to  the  Board  a  report  not  later  than 
November  1  of  each  year  for  the  year  ending  September  30  next  preceding  and  at  any 
otlier  time  upon  request  of  the  I'.oard.  which  shall  give  the  result  of  the  operations 
of  the  railroad  during  the  year  and  such  other  information  in  regard  to  the  business 
of  the  Companv  as  may  be  required  by  the  Board. 

Twenty-fifth — The  Company  shall  at  all  times  keep  accurate  books  of  account  of 
the  gross  receipts  from  all  sources  within  the  limits  of  the  City,  and  shall,  on  or 
before  November  1  of  each  year,  make  a  verified  report  to  the  Comptroller  of  the  Ctiy 
of  the  business  done  by  the  Company,  for  the  year  ending  September  30  next  pre- 
ceding, in  such  form  as  he  may  prescribe.  Such  report  shall  contain  a  statement  of 
such  gross  receipts,  the  total  length  of  track  in  operation  within  the  limits  of  the 
City  and  the  length  of  track  construction  and  operated  under  this  contract  and  such 
other  information  as  the  Comptroller  may  require.  The  Comptroller  shall  have 
access  to  all  books  of  the  Company  for  the  purpose  of  ascertaining  the  correctness 
of  its  report,  and  mav  examine  its  officers  under  oath. 

Twenty-sixth— In  case  of  any  violation  or  breach  or  failure  to  comply  with  any 
of  the  provisions  herein  contained,  or  with  any  orders  of  the  Board  acting  under  the 


17 

powers  herein  reserved,  the  franchise  or  consent  herein  granted,  may  be  forfeited  by  a 
suit  brought  by  the  Corporation  Counsel,  on  notice  of  ten  (10)  days  to  the  Com- 
pany, or  at  the  option  of  the  Board  by  resolution  of  said  Board,  which  said  resolution 
may  contain  a  provision  to  the  effect  that  the  railroad  constructed  and  in  use  by 
virtue  of  this  contract  shall  thereupon  become  the  property  of  the  City  without  pro- 
ceedings at  law  or  in  equity.  Provided,  however,  that  such  action  by  the  Board  shall 
not  be  taken  until  the  Board  shall  give  notice  to  the  Company  to  appear  before  it  on 
a  certain  day  not  less  than  ten  (10)  days  after  the  date  of  such  notice,  to  show 
cause  why  such  resolution  declaring  the  contract  forfeited  should  not  be  adopted.  In 
case  the  Company  fails  to  appear,  action  may  be  taken  by  the  Board  forthwith. 

Twenty-seventh — If  the  Company  shall  fail  to  give  efficient  public  service  at  the 
rates  herein  provided,  or  fail  to  maintain  its  structures  and  equipment  as  herein  pro- 
vided in  good  condition  throughout  the  whole  term  of  this  contract,  the  Board  may  give 
notice  to  the  Company  specifying  any  default  on  the  part  of  the  Company,  and  requir- 
ing the  Company  to  remedy  the  same  within  a  reasonable  time;  and  upon  failure  of  the 
Company  to  remedy  such  default  within  a  reasonable  time,  the  Company  shall,  for 
each  day  thereafter  during  which  the  default  or  defect  remains,  pay  to  the  City  the 
sum  of  two  hundred  and  lifty  dollars  ($250)  as  fixed  or  liquidated  damages,  or  the 
Board,  in  case  such  structures  or  equipment  which  may  affect  the  surface  of  the 
streets  shall  not  be  put  in  good  condition  within  a  reasonable  time  after  notice  by 
the  Board  as  aforesaid  shall  have  the  right  to  make  all  needed  repairs  at  the  expense 
of  the  Company,  in  which  case  the  Company  shall  pay  to  the  City  the  amount  of  the 
cost  of  such  repairs,  with  legal  interest  thereon,  all  of  which  sums  may  be  deducted 
from  the  fund  hereinafter  provided  for. 

Twenty-eighth — The  Company  shall  assume  all  liability  to  persons  or  property 
by  reason  of  the  construction  or  operation  of  the  railroad  authorized  by  this  contract, 
and  it  is  a  condition  of  this  contract  that  the  City  shall  assume  no  liability  what- 
soever to  either  persons  or  property  on  account  of  the  same,  and  the  Company  hereby 
agrees  to  repay  to  the  City  any  damage  which  the  City  shall  be  compelled  to  pay  by 
reason  of  any  acts  or  defaults  of  the  Company. 

Twenty-ninth — This  grant  is  upon  the  express  condition  that  the  Company,  within 
thirty  (30)  days  after  the  signing  of  this  contract  by  the  Mayor,  and  before  anything 
is  done  in  exercise  of  the  rights  conferred  hereby,  shall  deposit  with  the  Comptroller 
of  the  City  the  sum  of  ten  thousand  dollars  ($10,000),  either  in  money  or  securities, 
to  be  approved  by  him,  which  fund  shall  be  security  for  the  performance  by  the  Com- 
pany of  all  of  the  terms  and  conditions  of  this  contract  and  compliance  with  all  orders 
of  the  Board  acting  under  the  powers  herein  reserved,  especially  those  which  relate 
to  the  payment  of  the  annual  charges  for  the  privilege  hereby  granted,  the  rendering 
of  efficient  public  service  at  reasonable  rates,  the  repairs  of  the  street  pavement,  the 
removal  of  snow  and  ice,  the  quality  of  construction  of  the  railroad,  and  the  main- 
tenance of  the  property  in  good  condition  throughout  the  whole  term  of  this  con- 
tract; and  in  case  of  default  in  the  performance  by  the  Company  of  such  terms  and 
conditions,  or  compliance  with  such  orders  or  either  or  any  of  them,  the  City  shall 
have  the  right  to  cause  the  work  to  he  done  and  the  materials  to  be  furnished  for 
the  performance  thereof  after  due  notice,  and  shall  collect  the  reasonable  cost  thereof 
from  the  said  fund  without  legal  proceedings;  or  after  default  in  the  payment  of  the 
annual  charges,  shall  collect  the  same,  with  interest,  from  the  said  fund  after  ten 
(10)  days'  notice  to  the  Company;  or  in  case  of  failure  to  observe  the  said  terms  and 
conditions  of  this  contract  and  orders  of  the  Board  acting  hereunder  relating  to 
the  obstruction  of  traffic  and  the  maintenance  of  gates  and  flagmen,  the  Company 
shall  pay  a  penalty  of  fifty  dollars  per  day  for  each  day  of  violation,  all  of  which 
sums  may  be  deducted   from  said  fund. 

The  procedure  for  the  imposition  and  collection  of  the  penalties  in  this  contract 
shall  be  as  follows : 

The  Board,  on  complaint  made,  shall  give  notice  to  the  Company,  directing  its 
President,  or  other  officer,  to  appear  before  the  Board  on  a  certain  day  not  less 
than  ten  (10)  days  after  the  date  of  such  notice,  to  show  cause  why  the  Company 
should  not  be  penalized  in  accordance  with  the  foregoing  provisions.  If  the  Com- 
pany fails  to  make  an  appearance,  or,  after  a  hearing  appears  in  the  judgment  of  the 
Board  to  be  in  fault,  said  Board  shall  forthwith  impose  the  prescribed  penalty,  or 
where  the  amount  of  the  penalty  is  not  prescribed  herein,  such  amount  as  appears  to 
the  Board  to  be  just,  and  without  legal  procedure  direct  the  Comptroller  to  withdraw 
the  amount  of  such  penalty  from  the  security  fund  deposited  with  him.  In  case  of 
any  drafts  made  upon  the  security  fund  the  Company  shall,  upon  ten  (10)  days' 
notice  pay  to  the  City  a  sum  sufficient  to  restore  said  security  fund  to  the  original 
amount  of  ten  thousand  dollars   ($10,000),  and  in  default  thereof  this  contract  shall 


18 

be  cancelled  and  annulled  at  the  option  of  the  Board,  acting  in  behalf  of  the  City. 
No  action  or  proceeding  or  right  under  the  provisions  of  this  contract  shall  afifcct  any 
other  legal  rights,  remedies  or  causes  of  action  belonging  to  the  City. 

Thirtieth — The  grant  of  this  privilege  is  subject  to  whatever  right,  title  or  interest 
the  owners  of  abutting  property  or  others  may  have  in  and  to  the  streets  and  avenues 
in  which  the  Company  is  hereby  authorized  to  operate. 

Thirty-lirst — The  Company  hereby  agrees  that  it  will  not  institute  any  proceed- 
ings to  acquire  by  condemnation  any  land,  property,  appurtenances  or  rights  pursuant 
to  any  law,  unless  and  until  permitted  to  do  so  by  resolution  of  the  Board,  otherwise 
this  grant  shall  cease  and  determine. 

Thirty-second — The  words  "notice"  or  "direction,"  wherever  used  in  this  contract, 
.shall  be  deemed  to  mean  a  written  notice  or  direction.  Every  such  notice  or  direc- 
tion to  be  served  upon  the  Company  shall  be  delivered  at  such  office  in  the  City  as 
shall  have  been  designated  by  the  Company,  or  if  no  such  office  shall  have  been  des- 
ignated, or  if  such  designation  shall  have  for  any  reason  become  inoperative,  shall 
be  mailed  in  the  City,  postage  prepaid,  addressed  to  the  Company  at  the  City.  Delivery 
or  mailing  of  such  notice  or  direction  as  and  when  above  provided  shall  be  equivalent 
to  direct  personal  notice  or  direction,  and  shall  be  deemed  to  have  been  given  at  the 
time  of  delivery  or  mailing. 

Thirty-third— If  at  any  time  the  powers  of  the  Board  or  any  other  of  the  authori- 
ties herein  mentioned  or  intended  to  be  mentioned,  shall  be  transferred  by  law  to  any 
other  board,  authority,  offcer  or  officers,  then  and  in  such  ca.se  such  other  board,  au- 
thority, officer  or  officers,  shall  have  all  the  powers,  rights  and  duties  herein  reserved 
to  or  prescribed  for  the  Board  or  other  authorities,  officer  or  officers. 

Sec,  3.  Nothing  in  this  contract  shall  be  construed  as  in  any  way  limiting  the 
present  or  future  jurisdiction  of  the  Public  Service  Commission  under  the  Laws  of 
the  State  of  New  York. 

Sec.  4.  The  Company  promises,  covenants  and  agrees  on  its  part  and  behalf  to 
conform  to  and  abide  by  and  perform  all  tiie  terms,  conditions  and  requirements  in 
this  contract  fixed  and  contained. 

In-  witness  whereof,  the  party  of  the  first  part,  by  its  Mayor,  thereunto  duly 
authorized  by  the  Board  of  Estimate  and  .Apportionment  of  said  City,  has  caused 
the  corporate  name  of  said  City  to  be  hereunto  signed  and  the  corporate  seal  of  said 
City  to  he  hereunto  affixed ;  and  the  parly  of  the  second  part,  by  its  officers,  thereunto 
duly  authorized,  has  caused  its  corporate  name  to  be  hereunto  signed  and  its  corporate 
seal  to  be  hereunto  affixed,  the  day  and  year  first  above  written. 

THE  CITY   or   NEW  YORK. 

( Corporate  Seal.")  By Mayor. 

Attest :     City  Clerk. 

DEGNON    TERMIN.AL   R.MLROAD   CORPORATION. 

( Seal.)  By  President. 

Attest :     Secretary. 

(Here  add  acknowledgments.) 


J 


Dec^non     Terminal    Rm 


'RACK  S 

il  is  hereby  certified  thai  ihis  i 
rect  represent a1  ion   of  the  propo    p\         ^  >^  ip  o  /^  D    A  "T" 
tracks    of    this   CorporatiU/    ^  U        \^^J\}r^r^r\    \ 


Date  J.-. 
Dccembit 


n  the  +erritory   bound- 
nttrs     Point     Avenue, 
on  the    north    by 
December  lo,  i9i3, 


8.1913 


3 


1? 


o 


J 


1 


SHOWI  NG 


It  IS  herebij  certified  that  this  map  is  a  cor- 
rect reprasatital  ion  of  the  proposed  railroad 
tracks    of    ihia   Corporation, 

Dec^non    Terminal    Rmlroko    Corporation. 

^i^^^X^i^^C^^^^SV^',    President 
D«cc»iDir     a,  1913  C^ 


DEQNON    TERM 


MAP 
PROPOSED      TRACKS 

or 

NAL     RAILROAD 


CORPORATION 


Rad 

J.*      of 

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2lO 

["■•" 

Tracks    «o  py 

Vft.te   property 

sKo 

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in 

black 

" 

p.t;t 

oned      ^oY- 

■■ 

red. 

To  be  locot«d  in   First    Ward,   Borough    of   Queens,   in  the  +errirory  bound- 
ad  on  the   east   by    School     Street,  on   the    sooth    by   Hunters     ^o\y\*(    Avenue, 
on    the    west    and    north-west    bu    Meadow     Street    and.     on   the    north     btj 
Thomson      Avenue.         To    accompany    petitLon    tferi^ied.    Dece»nber  lo.  i9ii, 
ta   the     Board     of    £.3tinnote    and     A|>po»tionmant, 


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